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September 23, 2013 • Issue 13:09:02eptember 23, 2013 • Issue 13:09:02
S
How to kee
How to keep tabs p tabs

on reps, merchants – Part 2
on reps, merchants – Part 2

3. Could this scrutiny on the part of the FTC lead his scrutiny on the part of the FTC lead
3. Could t
to federal regulation of business-to-business (B2B) egulation of business-to-business (B2B)
to federal r
c
contracts, such as a three-day period in which a ontracts, such as a three-day period in which a
mer
merchant can renege on a signed contract? If so, chant can renege on a signed contract? If so,
h
how might that affect our industry?ow might that affect our industry?
For additional insights, see the first installment of this
For additional insights, see the first installment of this
series: "How to keep tabs on reps, merchants – Part 2,"
series: "How to keep tabs on reps, merchants – Part 2,"
The Green Sheet, Sept. 9, 2013, issue 13:09:01. We wish to
The Green Sheet, Sept. 9, 2013, issue 13:09:01. We wish to
thank all board members who responded and hope their
thank all board members who responded and hope their
answers offer insights and expertise that will help you in
answers offer insights and expertise that will help you in
T c your business endeavors.
h
his article is the second of a two-part series is article is the second of a two-part series
your business endeavors.
containing perspectives members of the Green ontaining perspectives members of the Green
Sheet Advisory Board shared in response to ques-heet Advisory Board shared in response to ques-
S
Br
Brandes Elitchandes Elitch
T tions about recent Federal Trade Commission tions about recent Federal Trade Commission
C
actions brought against payment companies. Allegations actions brought against payment companies. Allegations CrossCheck Inc.rossCheck Inc.
involved the promulgation and/or facilitation of decep-involved the promulgation and/or facilitation of decep-
tive sales practices. tive sales practices. 1. Monitorin
1. Monitoring our sales force. When an ISO resells our g our sales force. When an ISO resells our
p
products, we call the merchant and go over all the details roducts, we call the merchant and go over all the details
Depending on the circumstances, the alleged abuses Depending on the circumstances, the alleged abuses of t
of the service agreement – to verify that the merchant he service agreement – to verify that the merchant
pertain to the sales schemes of ISOs themselves or the pertain to the sales schemes of ISOs themselves or the understands our product, our pricing, how claims are nderstands our product, our pricing, how claims are
u
sales practices of the merchants they serve. All appear to sales practices of the merchants they serve. All appear to submitted and paid, and any other aspect which might y other aspect which might
submitted and paid, and an
incorporate telephone contact with prospects either to set incorporate telephone contact with prospects either to set cause misunderstanding. When our internal sales force ause misunderstanding. When our internal sales force
c
appointments or to close sales.appointments or to close sales. signs a new merchant, our customer service group gns a new merchant, our customer service group
si
p
performs the setup and training function. We strive erforms the setup and training function. We strive
Based on the related FTC statements, it is clear that Based on the related FTC statements, it is clear that f for total transparency, as well as to make sure that the or total transparency, as well as to make sure that the
some of the defendants' actions, if substantiated, are some of the defendants' actions, if substantiated, are mer
merchant knows who to call here if they need help. chant knows who to call here if they need help.
reprehensible (claiming to be associated with a merchant's reprehensible (claiming to be associated with a merchant's
current processor, quoting a fixed transaction fee without current processor, quoting a fixed transaction fee without 2. Evaluating our merchant customers and their sales and
2. Evaluating our merchant customers and their sales and
disclosing all other merchant fees, substituting contracts disclosing all other merchant fees, substituting contracts marketing practices. Unlike credit card ISOs, who typically
marketing practices. Unlike credit card ISOs, who typically
for applications when merchants apply for accounts, for applications when merchants apply for accounts, call on every merchant, we know that our product is a
call on every merchant, we know that our product is a
for example). When it comes to merchants' actions, for example). When it comes to merchants' actions, "must have" for only about a dozen merchant category
"must have" for only about a dozen merchant category
however, the level of ISO and processor involvement and however, the level of ISO and processor involvement and codes, which we know very well. Thus, we have a "self-
codes, which we know very well. Thus, we have a "self-
responsibility seems more difficult to discern.responsibility seems more difficult to discern. selection" process in place here.
selection" process in place here.
To help shed light on this issue, we asked our Advisory To help shed light on this issue, we asked our Advisory Contributed articles inside by:ticles inside by:
Contributed ar
Board the following questions:Board the following questions:
Ken Musante ......................................................... 28n Musante......................................................... 28
Ke
1. What are you doing to train and monitor your 1. What are you doing to train and monitor your
Ed Barton ............................................................. 34
sales force to ensure everyone who represents sales force to ensure everyone who represents Ed Barton ............................................................. 34
Ross Federgreen .................................................... 34
your business is aboveboard? your business is aboveboard? Ross Federgreen .................................................... 34
Dale S. Laszig ....................................................... 48e S. Laszig ....................................................... 48
Dal
2. How do you evaluate your merchant customers to 2. How do you evaluate your merchant customers to Jeff Fortney ........................................................... 52ff Fortney ...........................................................y 52
Je
ascertain that their sales and marketing practices ascertain that their sales and marketing practices Ch
Chandon Mukherjee .............................................. 56andon Mukherjee .............................................. 56
are indeed legal? are indeed legal?
T TOC on page 3OC on page 3
See Merchants - Part 2 on page 43page 43
See Merchants - Part 2 on